-
2008 Weihrich and CanniceChapter 8. Organizational Structure:
Departmentation*MANAGEMENT: A GLOBAL AND ENTREPRENEURIAL
PERSPECTIVE by Weihrich, Cannice, and KoontzOrganization Structure:
Departmentation Chapter8
Chapter 8. Organizational Structure: Departmentation
-
2008 Weihrich and Cannice*Chapter 8. Organizational Structure:
DepartmentationAfter studying this chapter, you should
understand:1.The basic patterns of traditional departmentation and
their advantages and disadvantages.2.Matrix organizations.Strategic
business units.Organization structures for global enterprises.5.
The virtual and boundaryless organizations.6.That there is no
single best pattern of departmentation.
Chapter 8. Organizational Structure: Departmentation
-
2008 Weihrich and Cannice*Chapter 8. Organizational Structure:
DepartmentationDepartmentation by Enterprise FunctionMost widely
employed basis for organizing activities and is present in almost
every enterprise at some level in the organization structure.No
generally accepted terminology for functional departments: A
manufacturing enterprise employs the terms production, sales, and
finance; a wholesaler is concerned with such activities as buying,
selling, and finance; and a railroad is involved with operations,
traffic, and finance.
Chapter 8. Organizational Structure: Departmentation
-
2008 Weihrich and Cannice*Chapter 8. Organizational Structure:
DepartmentationFig. 8-1 Departmentation by Enterprise Function
Chapter 8. Organizational Structure: Departmentation
-
2008 Weihrich and Cannice*Chapter 8. Organizational Structure:
DepartmentationDepartmentation by Territory or Geography Rather
common in enterprises that operate over wide geographic areas.
Chapter 8. Organizational Structure: Departmentation
-
2008 Weihrich and Cannice*Chapter 8. Organizational Structure:
DepartmentationFig. 8-2 Departmentation by Territory or
Geography
Chapter 8. Organizational Structure: Departmentation
-
2008 Weihrich and Cannice*Chapter 8. Organizational Structure:
DepartmentationFig. 8-3 Departmentation by Customers
Chapter 8. Organizational Structure: Departmentation
-
2008 Weihrich and Cannice*Chapter 8. Organizational Structure:
DepartmentationFig. 8-4 Departmentation by Product
Chapter 8. Organizational Structure: Departmentation
-
2008 Weihrich and Cannice*Chapter 8. Organizational Structure:
DepartmentationMatrix Organization The combining of functional and
project or product patterns of departmentation in the same
organization structure.
Chapter 8. Organizational Structure: Departmentation
-
2008 Weihrich and Cannice*Chapter 8. Organizational Structure:
DepartmentationFig. 8-5 Matrix Organization (in engineering)
Chapter 8. Organizational Structure: Departmentation
-
2008 Weihrich and Cannice*Chapter 8. Organizational Structure:
DepartmentationGuidelines for Making Matrix Management Effective
1.Define the objectives of the project or task.2.Clarify the roles,
authority, and responsibilities of managers and team
members.3.Ensure that influence is based on knowledge and
information, rather than on rank.4.Balance the power of functional
and project managers.5.Select an experienced manager for the
project who can provide leadership.6.Undertake organization and
team development.7.Install appropriate cost, time, and quality
controls that report deviations from standards in a timely
manner.8.Reward project managers and team members fairly.
Chapter 8. Organizational Structure: Departmentation
-
2008 Weihrich and Cannice*Chapter 8. Organizational Structure:
DepartmentationStrategic Business Units (SBUs) Distinct little
businesses set up as units in a larger company to ensure that a
certain product or product line is promoted and handled as though
it were an independent business.
Chapter 8. Organizational Structure: Departmentation
-
2008 Weihrich and Cannice*Chapter 8. Organizational Structure:
DepartmentationFig. 8-6 Strategic Business Units
Chapter 8. Organizational Structure: Departmentation
-
2008 Weihrich and Cannice*Chapter 8. Organizational Structure:
DepartmentationOrganization Structures for the Global Environment
Organization structures differ greatly for enterprises operating in
the global environment. The kind of structure depends on a variety
of factors, such as the degree of international orientation and
commitment.
Chapter 8. Organizational Structure: Departmentation
-
2008 Weihrich and Cannice*Chapter 8. Organizational Structure:
DepartmentationThe Virtual Organization A rather loose concept of a
group of independent firms or people that are connected often
through information technology. These firms may be suppliers,
customers, and even competing companies.
Chapter 8. Organizational Structure: Departmentation
-
2008 Weihrich and Cannice*Chapter 8. Organizational Structure:
Departmentation
Boundaryless Organization
Jack Welch, former CEO at GE (General Electric), stated his
vision for the company as a boundaryless company, an open,
anti-parochial environment, friendly toward the seeking and sharing
of new ideas, regardless of their origin. The purpose was to remove
barriers between the various departments as well as between
domestic and international operations.
Chapter 8. Organizational Structure: Departmentation
-
2008 Weihrich and Cannice*Chapter 8. Organizational Structure:
DepartmentationChoosing the Pattern of DepartmentationThere is no
one best way of departmentation that is applicable to all
organizations and all situations. Managers must determine what is
best by looking at the situation they face.The jobs to be done and
the way they should be doneThe people involved and their
personalities The technology employed in the department The users
being servedOther internal and external environmental factors in
the situation
Chapter 8. Organizational Structure: Departmentation
-
2008 Weihrich and Cannice*Chapter 8. Organizational Structure:
DepartmentationKEY IDEAS AND CONCEPTS FOR REVIEWDepartmentation by
enterprise functionDepartmentation by territory or
geographyDepartmentation by customer groupDepartmentation by
product
Matrix organization (or grid, or project, or product)Strategic
business unitOrganization structures for global enterprisesVirtual
organizationBoundaryless organization
Chapter 8. Organizational Structure: Departmentation
******************
